Build vs Buy
The benefits of Software-as-a-Service in public transport
Weighing the pros and cons of using SaaS software? We break down the key benefits, like lower upfront costs and rapid deployment, to help you make the right choice.
Making Passenger Podcast: Bitesize #1
Benefits of Software-as-a-Service in public transport
James and Katherine discuss software as a service and how it can accelerate delivery for public transport agencies.
Public transport agencies face increasing pressure to modernise their services, improve operational efficiency, and provide better customer experiences. Many agencies are turning to software to manage complex logistics, scheduling, ticketing, and real-time information delivery to achieve this. One of the most popular software models is Software as a Service (SaaS), which provides cloud-based solutions that can be accessed via the internet. However, SaaS is not the only option on the table—custom-built or bespoke software solutions also offer an alternative. In this post, we’ll dive into the benefits of SaaS software for public transport agencies and compare it to building custom software solutions.
SaaS in public transport
1. Lower Upfront Costs
One of the most compelling advantages of SaaS is the relatively low upfront investment. Agencies don’t need to purchase expensive hardware or build complex IT infrastructures. Instead, SaaS providers host the software on their servers, which can significantly reduce the initial implementation costs. This can be especially beneficial for smaller agencies that might not have large budgets for technology investments.
2. Rapid Deployment
SaaS solutions are typically faster to implement compared to custom-built software. Since the solution is already developed and configured, agencies can often start using the software within weeks or even days. This rapid deployment enables agencies to adapt quickly to changing regulations or operational needs, ensuring they remain competitive and responsive.
3. Lower Investment Risk
As SaaS software is already built, agencies can often see it in action before spending any money at all! This can significantly reduce their delivery risks compared with building a custom solution. As a buyer, agencies don’t own the software and pay to use it via a license fee. Many SaaS companies, including Passenger, reinvest a high proportion of that income into continuously improving the product.
Building in-house or through outsourced development teams means agencies pay for the initial development and ongoing maintenance. Controlling costs can be challenging, and often, an agency won’t really know what it’s eventually going to cost to build and upkeep from the outset, especially as the cost of skilled staff fluctuates with market availability.
4. Regular Updates and Maintenance
The vendor is responsible for software updates, security patches, and general maintenance with SaaS. This allows public transport agencies to focus on their core operations without having to dedicate significant IT resources to managing software infrastructure. Regular updates also mean agencies benefit from the latest features and improvements without undertaking costly upgrades.
5. Scalability
SaaS software is inherently scalable, allowing public transport agencies to adjust their usage based on current needs. If a city expands its transport system or experiences seasonal fluctuations in ridership, the software can scale up or down as needed. This flexibility ensures that agencies are not paying for resources they don’t use and can easily accommodate future growth without significant changes to their technology stack.
6. Vendor Expertise
SaaS providers often have deep industry knowledge and offer software designed based on best practices. Public transport agencies can leverage this expertise to access sophisticated features, such as real-time tracking, dynamic routing, and analytics tools that might be difficult to develop in-house.
SaaS and custom software solutions have their place in the public transport sector, and the right choice depends on an agency’s specific needs, budget, and long-term strategy.
SaaS is an attractive option for agencies looking for quick deployment, lower upfront costs, and access to cutting-edge features without dedicating large resources to software development. However, the trade-offs in customisation, control, and potential long-term costs can make it less appealing for agencies with highly specialised needs.
On the other hand, custom software can offer unmatched flexibility and control but comes with higher costs, longer development timelines, increased risk, and the burden of ongoing maintenance. This may be the preferred route for larger agencies with complex needs and sufficient budgets, while smaller agencies might find SaaS a more practical solution.
Ultimately, the choice depends on each agency’s priorities: if speed, scalability, and ease of use are the most important factors, SaaS is likely the better option. If customisation, control, and long-term flexibility are paramount, custom software may be worth the investment.
Agencies and operators who deploy Passenger SaaS solutions benefit from product capability that have been proven at all ends of the market with millions of users. Drop us a line if you’d like to explore how Passenger can help.
“Our whole digital suite is far better than it's ever been, and in such a short space of time!”
Marc Winsland
Commercial Manager (Former)
Xplore Dundee
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